$SAFT

SAFETY INSURANCE GROUP INC

CIK:0001172052|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Net earned premiums	$ 291,653	$ 282,113	$ 582,639	$ 554,803
Net investment income	16,559	15,724	33,597	30,298
Earnings from partnership investments	3,329	346	7,234	2,458
Net realized gains on investments	1,418	2,131	8,049	6,394
Change in net unrealized gains on equity securities	4,720	7,194	(6,777)	6,923
Credit loss (expense) benefit	(7)	66	(355)	(255)
Commission income	2,252	2,285	4,402	4,380
Finance and other service income	5,758	6,485	11,559	12,772
Total revenue	325,682	316,344	640,348	617,773
Expenses
Losses and loss adjustment expenses	195,119	194,232	442,609	384,522
Underwriting, operating and related expenses	83,883	82,796	166,164	163,647
Other expense	2,110	2,047	4,247	4,001
Interest expense	814	442	1,432	546
Total expenses	281,926	279,517	614,452	552,716
Income before income taxes	43,756	36,827	25,896	65,057
Income tax expense	9,239	7,890	5,702	14,224
Net income	$ 34,517	$ 28,937	$ 20,194	$ 50,833
Earnings per weighted average common share:
Basic	$ 2.36	$ 1.95	$ 1.38	$ 3.44
Diluted	2.36	1.95	1.38	3.43
Cash dividends paid per common share	$ 0.92	$ 0.9	$ 1.84	$ 1.8
Number of shares used in computing earnings per share:
Basic	14,521,693	14,744,968	14,509,999	14,731,843
Diluted	14,558,294	14,782,244	14,552,290	14,763,732

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 20,194	$ 50,833
Adjustments to reconcile net income to net cash provided by operating activities:
Investment amortization, net	(709)	(321)
Fixed asset depreciation, net	2,739	3,911
Stock based compensation	2,743	2,528
Credit for deferred income taxes	957	(88)
Net realized gains on investments	(8,049)	(6,394)
Credit loss expense	355	255
Earnings from partnership investments	(4,361)	(2,413)
Change in net unrealized gains on equity securities	6,777	(6,923)
Changes in assets and liabilities:
Accounts receivable, net	(12,343)	(26,549)
Accrued investment income	467	(1,256)
Receivable from reinsurers	(16,859)	(10,682)
Ceded unearned premiums	(3,643)	(95)
Deferred policy acquisition costs	(964)	(6,007)
Taxes recoverable/payable	(14,634)	(2,710)
Other assets	(984)	(932)
Losses and loss adjustment expense reserves	46,525	14,272
Unearned premium reserves	9,943	39,548
Accounts payable and accrued liabilities	(10,163)	(7,618)
Payable to reinsurers	3,303	(3,863)
Net cash provided by operating activities	21,294	35,496
Cash flows from investing activities:
Fixed maturities purchased	(165,072)	(117,399)
Equity securities purchased	(48,633)	(37,209)
Other invested assets purchased	(2,508)	(4,406)
Proceeds from sales and paydowns of fixed maturities	127,760	44,818
Proceeds from maturities, redemptions, and calls of fixed maturities	18,268	32,519
Proceeds from maturities of short-term investments		20,000
Proceed from sales of equity securities	68,743	37,407
Proceeds from other invested assets redeemed	3,588	6,453
Fixed assets purchased	(2,469)	(400)
Net cash used for investing activities	(323)	(18,217)
Cash flows from financing activities:
Proceeds from Citizens loan		30,000
Payments on FHLB loan		(30,000)
Dividends paid to shareholders	(26,954)	(26,844)
Net cash used for financing activities	(26,954)	(26,844)
Net (decrease) increase in cash and cash equivalents	(5,983)	(9,565)
Cash and cash equivalents at beginning of year	73,901	58,974
Cash and cash equivalents at end of period	$ 67,918	$ 49,409

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Investments:
Fixed maturities, available for sale, at fair value (amortized cost: $1,365,368 and $1,337,235, allowance for expected credit losses of $355 and $0)	$ 1,328,594	$ 1,315,548
Equity securities, at fair value (cost: $189,372 and $201,591)	201,956	220,953
Other invested assets	154,036	151,020
Total investments	1,684,586	1,687,521
Cash and cash equivalents	67,918	73,901
Accounts receivable, net of allowance for expected credit losses of $890 and $802	332,530	320,187
Receivable for securities sold	527	4,269
Accrued investment income	11,702	12,169
Taxes recoverable	10,731
Receivable from reinsurers related to paid loss and loss adjustment expenses	25,074	9,433
Receivable from reinsurers related to unpaid loss and loss adjustment expenses	150,659	149,441
Ceded unearned premiums	43,317	39,674
Deferred policy acquisition costs	112,755	111,791
Deferred income taxes	6,253	4,116
Equity and deposits in pools	5,081	4,197
Operating lease right-of-use-assets	9,773	11,861
Goodwill	17,093	17,093
Intangible assets	6,309	6,783
Other assets	18,976	18,672
Total assets	2,503,284	2,471,108
Liabilities
Losses and loss adjustment expense reserves	808,264	761,739
Unearned premium reserves	664,746	654,803
Accounts payable and accrued liabilities	70,299	80,461
Payable for securities purchased	5,061	846
Payable to reinsurers	18,487	15,184
Taxes payable		3,903
Long-term debt	50,000	50,000
Operating lease liabilities	9,773	11,861
Total liabilities	1,626,630	1,578,797
Commitments and contingencies (Note 8)
Shareholders' equity
Common stock: $0.01 par value; 30,000,000 shares authorized; 18,103,084 and 18,051,631 shares issued	181	181
Additional paid-in capital	238,435	235,693
Accumulated other comprehensive loss, net of taxes	(28,771)	(17,133)
Retained earnings	837,302	844,063
Treasury stock, at cost: 3,419,947 shares	(170,493)	(170,493)
Total shareholders' equity	876,654	892,311
Total liabilities and shareholders' equity	$ 2,503,284	$ 2,471,108